2017 RESULTS 9 March 2018 MAURICE TCHENIO CHAIRMAN & CEO OF - - PowerPoint PPT Presentation
2017 RESULTS 9 March 2018 MAURICE TCHENIO CHAIRMAN & CEO OF ALTAMIR GERANCE ERIC SABIA CFO ----------------------------------- ACCESSING APAX PARTNERS INVESTMENTS THROUGH THE STOCK MARKET AGENDA Presentation of Altamir The private
9 March 2018
MAURICE TCHENIO
CHAIRMAN & CEO OF ALTAMIR GERANCE
ERIC SABIA
CFO
THROUGH THE STOCK MARKET
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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▪ Euronext Paris-listed private equity company, created in 1995 as a means to access Apax Partners’ investments through the stock market ▪ €787m in net assets and 49 portfolio companies as of 31 December 2017 ▪ Legal structure: French Société en Commandite par Actions (SCA)
▪ Tax regime: French Société de Capital Risque (SCR)
PROFILE
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▪ Grow NAV per share and outperform the most relevant indices (LPX Europe and CAC Mid & Small)
Performance
▪ Maintain a sustainable and attractive dividend policy (2-3% of year-end NAV)
Shareholder return
▪ Reach a critical mass of €1bn in assets under management in order to:
Critical mass
Providing shareholders with long term capital appreciation and regular dividends OBJECTIVES
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Since 2011 and going forward ▪ In the funds managed by Apax Partners SAS
(with an €80m opt-out clause)
▪ In the funds advised by Apax Partners LLP
▪ Occasionally in co-investment with the funds managed or advised by Apax Partners SAS and Apax Partners LLP Prior to 2011 ▪ Co-investments alongside the funds managed by Apax Partners SA (renamed Amboise Partners SA)
Nearing the end of the transition period: as of 31 December 2017, only 6 companies out of 49 remained from the legacy portfolio ALTAMIR INVESTS WITH APAX PARTNERS
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ALTAMIR INVESTS WITH APAX PARTNERS Altamir is an investor in Apax’s core funds
Following their successful fundraising in 2016 ▪ Apax Partners LLP has raised a $1bn Digital fund
▪ Apax Partners SAS is in the process of raising a €225m small cap fund
Altamir Gérance has decided not to commit to these funds
number of investments (50 maximum) and a €10m minimum size as an objective for each of them
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private equity firms, leaders in their respective markets
years of experience
Apax Partners SAS
30 investment professionals; sector specialisation Mid-sized companies, with enterprise value of €100m to €1bn Investments in French- speaking European countries More than €3bn under management Equity tickets: €50-150m Apax France IX: €1bn (2016) Apax France VIII: €704m (2011)
Apax Partners LLP
120 investment professionals across 8 offices worldwide, specialised by sector Companies with enterprise value between €1bn and €5bn Investments in Europe (other than French-speaking countries), in North America and in key emerging markets (China, India, Brazil) More than $48bn under management Equity tickets: $360-420m Apax IX LP: $9bn (2016) Apax VIII LP: $7.5bn (2013) Paris-based company London-based company
APAX PARTNERS
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Sectors of specialisation
Control
Leveraged investments
European countries (France, Benelux, Switzerland)
key emerging markets (China, India and Brazil)
Diversified by geography and size Growth companies
teams
TARGET: ACHIEVE 2-3X THE AMOUNT INVESTED
Growth- and sector-focused strategy INVESTMENT STRATEGY
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SECTOR EXPERTISE VALUE CREATION RIGOROUS PROCESSES
Clear differentiating factor to identify the best investment opportunities, win deals and create value Hands-on involvement by Apax teams to create value through operational excellence, internationalisation, consolidation/acquisitions and digital transformation Environment, social & governance, due diligence and monitoring of each investment
Shared by Apax Partners SAS & Apax Partners LLP APAX’S COMPETITIVE ADVANTAGES
RESPONSIBLE INVESTMENTS
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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308.4 130.9 43.4 96.2 115.3 97.3 93.4 143.8 136.8 125.8 158.4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Buyout value (in $bn)
Very active market EUROPEAN PRIVATE EQUITY MARKET
Source: MergerMarket
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Very active market EUROPEAN PRIVATE EQUITY MARKET
Exit value (in $bn)
187.7 94.6 34.2 94 131.9 113.3 91.1 177.4 165.8 148 180.9 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source : MergerMarket
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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Statutory net cash Position
(at 31/12/2017)
Average EBITDA growth* NAV growth Divestments Investments & commitments New investments & commitments
Portfolio turnover and increased international footprint 2017 HIGHLIGHTS +2.6%
dividend included (vs +19.2% in 2016)
+27%
(vs +33% in 2016)
€ 98.7m
(vs €215.7m in 2016)
11
(vs 8 in 2016)
€ 118.2m
(vs €112.3m in 2016)
€ 7.3m
(vs €67.3m at end-2016)
* Average EBITDA growth of portfolio companies, weighted by each company’s contribution to NAV
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€98.7m of divestment proceeds and revenue in 2017 DIVESTMENTS
(in € million)
69.1 4.3 7.2 117.3 188.7 38.5 115.2 63.9 88.2 215.7 98.7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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DIVESTMENTS
from the sale of 50% of Altamir's stake in Altran via an ABB at €15.0 per share
from the refinancing and partial sale of GlobalLogic
from the sale of the first block of Altamir’s remaining shares in Gfi Informatique
from the release of the last portion of an escrow account related to former portfolio company Vizada
from the sale of the remaining shares held in the listed company Chola
from the sale of Altamir’s remaining stake in GardaWorld
from the debt refinancing of Shriram, Exact Software, Idealista and Safetykleen
from the partial sale of EVRY on the occasion of its IPO
from other portfolio companies
€98.7m of divestment proceeds and revenue in 2017
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95.9 77.6 45.6 50.5 41.1 74.5 39.6 130.3 83.0 95.3 12.1 18.8 8.6 17.4 21.3 6.0 17.7 3.8 12.9 29.3 22.9
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Titre du graphique
New investments & commitments Follow-on investments Number of new portfolio companies
5 2 2 3 2 7 12 7
€118.2m invested and committed in 2017 INVESTMENTS AND COMMITMENTS
(in € million)
8 11
108.0 96.4 8.6 63.0 71.8 47.1 92.2 43.4 143.2 112.3 118.2
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CONSUMER HEALTHCARE
€2.8m
Kepro
APAX IX LP
Provider of care coordination and quality assurance services primarily for US State and Federal healthcare payers
SERVICES
€95.3m invested in 11 companies in 2017 INVESTMENTS AND COMMITMENTS
€5.6m
Safetykleen Europe
APAX IX LP
Leading service provider of surface treatment and chemical application services, with operations in Europe, Brazil, China and Turkey
€3.2m
Attenti
(former electronic monitoring business of 3M) APAX IX LP
Global provider of electronic monitoring systems for government correctional and law enforcement agencies
€11.2m including co-investment
ThoughtWorks
APAX IX LP
Global software development and digital transformation consulting company
€4.3m
ECi Software Solutions
APAX IX LP
Leading provider of enterprise resource planning (ERP) software solutions to SMEs across the distribution, field services, manufacturing, and building & construction industries
€5.3m
Syneron Candela
APAX IX LP
Leading global non-surgical aesthetic device company
€7.2m
Matchesfashion.com
APAX IX LP
Global leader in online luxury-fashion retailing, offering a collection of over 450 designers
€47.1m including co-investment
CIPRÉS Assurances
APAX FRANCE IX
Leading French wholesale broker specialised in supplemental insurance protection for self-employed persons and SMEs
€3.8m
Guotai Junan Securities
APAX IX LP
One of the leading securities firms in China; listed in Shanghai and Hong Kong
€1.7m
Manappuram Finance
APAX IX LP
Second-largest lender against gold in India, with a loan book of $2.1bn; listed in Mumbai
€3.0m
Tosca Services
APAX IX LP
Leading provider of supply chain solutions and reusable packaging to a variety of perishable grocery markets
TMT SERVICES
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15.14 9.80 11.03 11.59 12.10 13.47 14.87 16.04 18.60 21.62 21.54 0.18* 0.16* 0.20 0.41 0.45 0.50 0.56 0.65 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Titre du graphique
NAV per share at 31 December, in € Dividend paid in N for financial year N-1, in €
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2.6% NAV growth in 2017, dividend included HISTORICAL NAV GROWTH
(in € million)
* Dividend for FY N-1, divided by number of shares in N
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789.5 789.5 793.7 839.7 816.2 811.0 810.4 786.7
4.2 63.6 17.6 23.5 5.3 0.6 23.7
NAV at end 2016 Realised Gain Unrealised Gain FX Impact (net of carried interest) Direct and indirect costs* and taxes Carried interest provisions* Interest Income & Other Dividend NAV at end 2017
€50.2m of value creation
NAV BRIDGE
(in € million)
+
Negative impact of forex (representing €0.48 per share)
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0.1 1.2 3.4 5.9 6.0 7.3 8.3 14.5 16.2 17.8 18.2
VALUE CREATION BY COMPANY
Contribution to NAV Company performance Valuation multiple
Strong operational performance significantly driving value movements and/or valuation outlook Operational performance behind expectations impacting value and/or valuation outlook Weakened operational performance negatively contributing to value movements and/or valuation outlook
Other TMT Other Services Other Consumer Other Healthcare Albioma INSEEC U. Marlink Melita SK FireSafety Group Altran InfoVista Sandaya Alain Afflelou Amplitude Surgical THOM Europe Snacks Développement Nowo/Oni
50.2
(in € million)
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132.4 46.0 24.9 42.9 4.6 14.1 20 40 60 80 100 120 140
EBITDA growth
valuation metrics Change in multiple Change in Net Debt Cash in / cash
Accretive / dilutive instruments Value creation
874.6 894.6 135.6 109.6 46.0 500 550 600 650 700 750 800 850 900
Ptf Value 12/2016 Proceeds 2017 Investment + Follow-on 2017 Unrealised Gain Ptf Value 12/2017
Portfolio Bridge at fair market value (m€)
Value creation driven by strong EBITDA growth and offset by decline in comparable multiples VALUE CREATION ANALYSIS
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590.8 517.1 517.1 626.7 626.7 644.2 73.7 109.6 17.5 300 350 400 450 500 550 600 650 700 Portfolio 12/2016 Divestments Investments incl. follow-on Portfolio 12/2017 New commitments Portfolio incl. commitments 12/2017
A significant level of invested capital MOVEMENTS IN THE PORTFOLIO AT COST
(in € million)
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p.24 40% 6% 54% 23% 12% 55% 10%
18% 5% 70% 6% Portfolio at fair value as of 31/12/2015 Portfolio at fair value as of 31/12/2016 Portfolio at fair value as of 31/12/2017
Shares valued at fair value, with an adjustment of up to 30% or at the negotiated transaction price Shares valued at the share price of the portfolio company or the listed operating company Shares valued at cost Other
Most of the portfolio is valued using comparable multiples PORTFOLIO VALUATION
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26 7 41 113 28 104 38 37 173 102 56 14 68 166 32 121 47 50 201 115
2007 2008-2009 2010 2011 2012 2013 2014 2015 2016 2017
Valuations Exit prices
+47% +117% +66% +13% +13%* +16% +16% +22% +35% +88%
Historical Uplift CONSERVATIVE VALUATION POLICY
* including divestments of Altran, Answers, Chola, Garda, Rue21 and Unilabs
(Difference between exit price and the last carrying value)
(in € million)
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€284.6m* of outstanding commitments at end-2017 to be invested over the next 2-3 years:
▪ €191.5m to Apax France IX ▪ €74.2m to Apax IX LP ▪ €16.9m to Apax France VIII ▪ €2m of residual commitment alongside Apax France VII
+ €13m potential follow-on investment in the legacy portfolio to support Altran’s acquisition of Aricent The outstanding commitments are covered 3.2x by the current portfolio, net cash position and undrawn credit facilties as of 31 December 2017
* The €37.2m invested in Ciprés Assurances, to be called in 2018, not included in this amount.
Outstanding commitments as of 31 December 2017 COMMITMENTS
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To minimise the drawbacks of cash shortage, Altamir can rely on: ▪ Statutory net cash position
▪ Credit facilities used as bridge loans
▪ Greater visibility on cash needs due to Apax Funds’ new way of making capital calls ▪ Opt-out clause with Apax Partners SAS
Critical to optimise listed private equity performance CASH MANAGEMENT
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▪ Apax Partners SA, Altamir's investment advisor since inception, changed its name to Amboise Partners SA on 1 January 2018 ▪ A new investment of around €30m to be made via Apax France IX in an Italian company
▪ US company Genex Services to be sold by Apax VIII LP
EVENTS POST 31 DECEMBER 2017
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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Investment type in % of portfolio at fair value
(number of companies or co-investments)
PORTFOLIO OVERVIEW
€895M AT FAIR VALUE AS OF 31 DECEMBER 2017 – 49 COMPANIES 36% in direct investments 64% via the Apax funds
Legacy portfolio Co-investments Apax IX LP Apax VIII LP Apax France VIII-B Apax France IX-B
25.9%
(6)
10.4%
(5*)
14.2%
(4**)
35.0%
(8**)
* 5 co-investments in Ciprés, InfoVista, Marlink, Snacks Développement and ThoughtWorks ** Marlink is an investment of both Apax France VIII-B and Apax France IX-B
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39% 33% 22% 6%
A well-diversified portfolio
12% 29% 5% 4% 19% 30% 46% 54%
By sector
% of portfolio at fair value as of 31/12/2017
By vintage
% of portfolio at fair value as of 31/12/2017
By geography
% of portfolio at cost as of 31/12/2017
France (12 companies) International (37 companies) 2017 (12 companies) 2016 (10 companies) 2015 (11 companies) 2014 (3 companies) 2013 (5 companies) 2012 and earlier (8 companies)
PORTFOLIO COMPOSITION
TMT (16 companies) Services (14 companies) Consumer (10 companies) Healthcare (9 companies) 41%
TMT + digital companies in other sectors
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p.32 As of 31/12/2017 Sector Year of investment Residual cost in €m Fair value in €m % of portfolio at fair value
Marlink 2016 59.0 121.9 13.6% INSEEC U. 2013 42.9 91.3 10.2% Albioma* 2005 59.0 78.9 8.8% Snacks Développement 2013 37.9 70.1 7.8% THOM Europe 2010 36.6 61.6 6.9% Melita 2016 33.9 48.4 5.4% CIPRES Assurances 2017 47.1 47.1 5.3% Altran* 2008 18.7 45.8 5.1% InfoVista 2016 38.9 42.3 4.7% SK FireSafety Group 2014 31.5 37.0 4.1% Alain Afflelou 2012 20.6 26.8 3.0% Amplitude Surgical* 2011 14.0 22.3 2.5% Sandaya 2016 17.6 18.7 2.1%
Total 13 largest investments 457.6 712.3 79.6%
Other TMT (12 companies) 73.6 88.8 9.9% Other Services (10 companies) 30.7 43.0 4.8% Other Healthcare (8 companies) 26.9 29.8 3.3% Other Consumer (6 companies) 37.9 20.7 2.3%
Total 49 investments 626.7 894.6 100%
PORTFOLIO COMPANIES
* Listed companies
The 13 largest investments represent 80% of the portfolio at fair value
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2% 9% 4% 10%
Altamir portfolio (sample of 44 companies for 2017 EBITDA growth, excluding Shriram, Guotai, Manappuram Syneron Candela, ECi) CAC 40 companies excluding financials (sample of 35 companies)
2013 vs 2012 2015 vs 2014 2014 vs 2013 2016 vs 2015 2017 vs 2016
New methodology: year-on-year EBITDA growth at constant exchange rates, weighted by NAV for Altamir and by market cap for CAC 40 (in %)
High-growth companies PORTFOLIO PERFORMANCE
Sources: company reports or analyst consensus as of 3 March 2018
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6% 37% 16% 40% <0 0 - 10% 10 - 20% >20% % of portfolio at fair value 16% 19% 20% 43% <0 0 - 10% 10 - 20% >20% % of portfolio at fair value
27% EBITDA growth* 33% revenue growth*
10 20 7 10 15 9 10 10 Number of portfolio companies Number of portfolio companies
High-growth companies PORTFOLIO PERFORMANCE IN 2017
* Revenue and EBITDA growth at constant exchange rates, weighted by each company’s contribution to NAV Sample of 47 companies for revenue growth (excluding Syneron Candela and ECi) and 44 companies for EBITDA growth (excluding Shriram City Union, Guotai, Manappuram Finance, Syneron Candela, ECi)
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p.35 8.89 9.52 10.83 10.68 10.88 2013 2014 2015 2016 2017
Valuation multiples at end of period
Average multiples weighted by each company’s contribution to NAV Entreprise value / LTM EBITDA # of companies
44 38 28 21 17 3.83 3.82 3.96 4.07 4.22 2013 2014 2015 2016 2017
Debt multiples at end of period
Average multiples weighted by each company’s contribution to NAV Total net debt / LTM EBITDA # of companies
44 38 27 21 16
PORTFOLIO VALUATION AND DEBT MULTIPLES
Sample of 44 companies as of 31/12/2017 (excluding Shriram City Union, Guotai, Manappuram Finance, Huarong, Zensar)
New methodology: weighted average multiples of the Apax France/Apax LLP aggregated portfolio
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CONSOLIDATION AND ACQUISITIONS DIGITAL TRANSFORMATION FINANCIAL FLEXIBILITY INTERNATIONALISATION OPERATIONAL EXCELLENCE
Value creation drivers PORTFOLIO COMPANIES
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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70% 85% 47% 3% 67% 35% 13%
10 years 5 years 3 years 1 year Altamir LPX Europe NAV TR index (30 constituents)
NA*
NAV Total Return as of 31 December 2017 over 1, 3, 5 and 10 years
Altamir outperforms its benchmark index over 3 and 5 years NAV TR PERFORMANCE
Sources: Altamir and LPX data as of 28 February 2018 * LPX Europe data available from 30/09/2009
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LOW INTRINSIC RISK PROFILE
PRUDENT FINANCIAL STRATEGY CONSERVATIVE VALUATION POLICY
▪ No leverage at Altamir level ▪ No over-commitment ▪ No currency risks on Fund investments ▪ Up to 30% downward adjustment applied on unlisted investments ▪ Exit prices always higher than last valuations (see historical uplift graph) ▪ Diversified by sector, geography and maturity ▪ Reasonable leverage in the portfolio
DIVERSIFIED AND HEALTHY PORTFOLIO
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3.0% 4.5% 4.1% 4.7% 5.2% 4.3% 0.20 0.41 0.45 0.50 0.56 0.65 0.65 2012 2013 2014 2015 2016 2017 2018
+16% +12% +11% +10%
Yield on average closing price Dividend in €
2-3% of year-end NAV since 2013 DIVIDEND POLICY
*
* Proposed dividend at the next Annual general meeting (26/04/2018)
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121% 156% 69% 24% 69% 132% 59% 19% 139% 65% 25% 10 years 5 years 3 years 1 year Altamir LPX Europe TR index (30 constituents) CAC Mid&Small GR index
NA*
Total shareholder return as of 31 December 2017 over 1, 3, 5 and 10 years
Altamir outperforms its benchmark indices TOTAL SHAREHOLDER RETURN
Sources: Altamir and LPX data as of 28 February 2018 * CAC Mid & Small GR index not available before 2011
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High value creation potential HISTORICAL PERFORMANCE SINCE INCEPTION IN 1995
Total investments Fully realised portfolio*
capital transactions * 1
Unrealised and partially realised portfolio
Amount in €m Multiple IRR
▪ 1,182 ▪ 462 ▪ 425 ▪ 720 ▪ 2.08x ▪ 16.1% ▪ 2.18x ▪ 18.9% ▪ 1.50x ▪ 9.3%
* Audited by EY 1 Corresponds to Altamir's current investment strategy; venture capital transactions taken out of the strategy more than 10 years ago
As of 31 December 2017
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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Investments Divestments Value creation Objectives Achievements
▪ 11 new investments & commitments for €95.3m ▪ €22.9m of follow-on investments ▪ Totalling €118m ▪ €99m ▪ 27% average EBITDA growth ▪ 5-6 new investments ▪ Totalling ~€80m ▪ €100m ▪ 7% average EBITDA growth
Achievements as of 31 December 2017 2017 OBJECTIVES
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39% 33% 22% 6%
Significant change in asset allocation over the past six years
46% 54% 18% 82%
By sector
% of portfolio at fair value as of 31/12/2017
By geography
% of portfolio at cost as of 31/12/2017
31/12/2011 31/12/2017
France International
PORTFOLIO COMPOSITION
TMT Services Consumer Healthcare
28% 16% 35% 21% 31/12/2011 31/12/2017
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Investments Divestments Value creation Objectives
▪ 6-7 new investments ▪ Totalling ~€100m ▪ €150m ▪ 7% average EBITDA growth
2018 OBJECTIVES
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The private equity market 2017 operating highlights A quality portfolio NAV and share price performance Objectives Conclusion Presentation of Altamir
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Unique value proposition
▪ Allows access to private equity’s superior returns and Apax Partners’ expertise
▪ Double-digit annual growth in NAV on a total return basis ▪ Ambitious strategy focused on long- term growth ▪ Well diversified portfolio by sector, geography & maturity ▪ Reasonable leverage in the portfolio ▪ Conservative valuation policy ▪ Rigorous cash management process ▪ No structural debt at Altamir level ▪ Maurice Tchenio owns 29% of the share capital ▪ 40+ years of experience in private equity ▪ Yield of 4-5% per year ▪ Double-digit total shareholder return ▪ Attractive entry point ▪ For long-term investors under certain conditions
Growth-driven strategy Shareholder return Low intrinsic risk profile
Experienced and committed manager
Tax efficiency
Why invest? CONCLUSION
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(in € million) 2015 2016 2017 Changes in fair value of the portfolio 123.4 167.4 46.0 Valuation differences on divestments during the period 15.0 11.1 2.7 Other portfolio income 18.5 1.5 1.5 Income from portfolio investments 157.0 180.0 50.2 Purchases and other external expenses (18.4) (21.0) (25.1) Gross operating income 138.2 156.5 26.7 Net operating income 110.6 128.6 21.4 Net income attributable to ordinary shareholders 111.8 129.0 20.9 Earnings per ordinary share (in euros) 3.06 3.53 0.57
CONSOLIDATED INCOME STATEMENT (IFRS)
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(in € million) 31/12/2015 31/12/2016 31/12/2017 TOTAL NON-CURRENT ASSETS 697.4 875.2 895.2
686.5 874.6 894.6 TOTAL CURRENT ASSETS 47.1 79.8 27.9 TOTAL ASSETS 744.5 955.0 923.0 TOTAL SHAREHOLDERS’ EQUITY 679.3 789.5 786.7
111.8 129.0 20.9 Carried interest provision for the General Partner and class B shareholders 39.1 44.0 29.7 Carried interest provision for class C shareholders in the Apax funds 17.3 37.2 40.8 Financial liabilities 8.8 84.2 65.9 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 744.5 955.0 923.0 NAV per share (in euros) 18.60 21.62 21.54
CONSOLIDATED BALANCE SHEET (IFRS)
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(In € million)
2015 2016 2017
Operating expenses
Taxes
Net financial income 0.3 0.9 0.2 Change in operating provisions Change in working capital
0.0 2.3 Cash flow from operating activities
Gross investments
Net resources (exits) 147.1 193.2 138.7 Cash flow from investing activities 51.1 65.9
Dividends paid ADP
Dividends paid AO
Capital increase Change in debt Cash flow from financing activities
CASH FLOW 19.1 30.4
CASH BEGINNING OF PERIOD 36.9 36.9 67.3 CASH END OF PERIOD 56.0 67.3 7.3
CASH FLOW (STATUTORY STATEMENTS)
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NAV breakdown as of 31 December 2017
In €m
Fair Market Value % of NAV
Marlink
121.9 15.5%
INSEEC
91.3 11.6%
Europe Snacks
70.1 8.9%
THOM Europe
61.6 7.8%
Melita
48.4 6.2%
Ciprés
47.1 6.0%
InfoVista
42.3 5.4%
SK FireSafety Group
37.0 4.7%
Alain Afflelou
26.8 3.4%
Sandaya
18.7 2.4%
Other Unlisted Companies
167.9 21.3%
Sub-total unlisted
733.1 93.2%
Albioma
78.9 10.0%
Altran
45.8 5.8%
Amplitude
22.3 2.8%
Other Listed Companies1
14.5 1.8%
Sub-total listed
161.5 20.5%
Total Portfolio
894.6 113.7%
Provision for carried interest
Other assets and liabilities
0.9 0.1%
Cash (Debt)
Net Asset Value
786.7 100.0%
Number of shares
36,512,301
Net Asset Value per share
21.54
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Enterprise value / EBITDA
Portfolio = 10.88x
VALUATION MULTIPLES 5% 37% 17% 41%
< 8x (7 companies) 8x - 10x (7 companies) 10x - 11x (6 companies) > 11x (24 companies)
Leverage (total LTM debt) / EBITDA
Portfolio = 4.22x
DEBT MULTIPLES 9% 1% 30% 39% 20%
< 0x - 2x (10 companies) 2x - 3x (2 companies) 3x - 4x (6 companies) 4x - 5x (10 companies) > 5x (16 companies)
% of Altamir’s portfolio at fair value et 31/12/2017
PORTFOLIO VALUATION AND DEBT MULTIPLES
% of Altamir’s portfolio at fair value at 31/12/2017
2016 Average multiple % of fair market value*
Apax France 10.46 92% Apax LLP 13.10 8%
2017 Average multiple % of fair market value*
Apax France 10.44 86% Apax LLP 13.61 14% * Sample of 44 companies as of 31/12/2017 and 38 companies as of 31/12/2016
New methodology: weighted average multiples of the Apax France/Apax LLP aggregated portfolio
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World-leading provider of satellite communication services
▪ Strong momentum in the maritime VSAT sector with an installed base up 34% year-on-year (11,000+ vessels in total) ▪ Structural decline in revenue generated by legacy MSS products ▪ Increasing contribution of higher-margin VSAT solutions in revenue mix ▪ Successful integration of Italian company Telemar contributing to Marlink’s expansion in VSAT ▪ Acquisition of OmniAccess (satcom solutions in the superyacht and high- end boutique cruise segment) to create the worldwide leader in maritime VSAT services ($500m in revenues, 1,000 people)
2017 pro forma revenue: $423m, down 3% vs 2016 2017 pro forma EBITDA: up 13%
TMT PORTFOLIO COMPANY SNAPSHOTS
Leading cable operator in Malta offering converged telecommunications services
▪ Maintained its growth momentum in 2017 ▪ Launch of new products (TV platform offering new advanced features, “build your own bundle” 4P offer) ▪ Growing customer base for all segments (broadband, pay-TV, mobile and fixed telephony) coupled with a reduction in churn rates ▪ Cancellation of the proposed merger with Vodafone Malta ▪ Committed to developing a unique convergent services offering by upgrading the mobile network to the latest generation 4.5G standards and by rolling out the recently launched Gigabit Internet service
2017 recurring revenue: up 5% vs 2016 2017 EBITDA: up 11% vs 2016
2017 RESULTS 9 MARCH 2018
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Leading global provider of network performance software solutions and services
▪ Successful integration of TEMS generating significant cost synergies ▪ Favourable development of the product mix towards more recurring maintenance and service (50%+ of total revenues) ▪ Improved contract renewals ▪ Significantly strengthened sales and marketing teams ▪ New organisation aimed at reinvigorating software sales being implemented
TMT PORTFOLIO COMPANY SNAPSHOTS
World leader in engineering and R&D services
▪ Continued growth in key regions (France, Southern Europe, India) ▪ Continued rebound of performance in Germany ▪ Performance driven by both organic growth and recently completed acquisitions ▪ Transforming acquisition of US company Aricent to close in Q1 2018, to create the undisputed global leader in engineering and R&D services with close to €3bn in revenues and almost 45,000 employees operating in ~30 countries
2017 revenue: €2.3bn, up 10% vs 2016 (+5.6% organic growth) 2017 EBIT: €246.3m, up 13.6% Share price: stable in 2017 H1 2017-18 (FYE 30 June): +3 pts EBITDA margin improvement
2017 RESULTS 9 MARCH 2018
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Largest private higher-education group in France (16 schools)
▪ New umbrella-brand INSEEC Universitas, known as INSEEC U. ▪ Performance driven by new student enrolment (up 18% in September-October 2017 vs. previous year) ▪ Significant synergies generated from integration of new schools ▪ Group plan to generate double-digit EBITDA growth in FY 2017/18
H1 2017-18 revenue (FYE 30 June): €113.5m up 2% vs H1 2016-17 H1 2017-18 EBIDTA: in line with H1 2016-17
Services PORTFOLIO COMPANY SNAPSHOTS
French electricity producer with a unique capability in renewable energy
▪ 2017 results above targets ▪ Very Good performance of the power plants in France and Brazil ▪ Fourth investment in Brazil: acquisition of 60% of a bagasse cogeneration plant in the state of Goiás
2017 revenue: €403.2m, up 10% vs 2016 2017 EBITDA: €138.3m, up 5% vs 2016 Share price: up 27% in 2017
2017 RESULTS 9 MARCH 2018
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Leading fire safety specialist in Northern Europe
▪ Demonstrated strong growth across all business units (except Oil & Gas) in 2017 ▪ Good performance of recurring businesses ▪ Successful cost savings programme ▪ Completed a debt refinancing process reducing its debt cost significantly
2017 revenue: €108.9m, up 3% vs 2016 2017 EBITDA: up 17%
Services PORTFOLIO COMPANY SNAPSHOTS
Leading French wholesale broker specialised in supplemental insurance protection for self- employed persons and SMEs
▪ €213m of premiums collected in 2017 ▪ Successful launch of an innovative protection product on the French market ▪ Full revamping of the back-office IT software ▪ Expected double-digit growth in revenues and EBITDA in FY 2018
2017 revenue: €74m, up 12.8% vs 2016 2017 EBITDA: up sharply
2017 RESULTS 9 MARCH 2018
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Leading French producer of private-label savoury snacks
▪ Successful commissioning of the first stacked crisps production line at Kolak to serve the UK market ▪ Sales growth in key markets (France, UK) ▪ Profitability impacted by a rise in raw material prices and exceptional costs (ramp-up of the new production line in the UK and implementation of a logistics outsourcing solution in France)
2017-18 expected revenue (FYE 31 January): €267m, up 2.5% (pro forma) Expected decline in profitability
Leading jewellery retailer in Europe (1,000 stores)
▪ Continued growth in 2016-17 driven by the strong performance of French operations, 78 new stores in Europe and increased online sales ▪ Focused on the integration of Stroili Oro and Oro Vivo (400+ stores) ▪ Refinanced its debt, considerably reducing financing costs
2016-17 revenue (FYE 30 Sept.): €644.3m, up 2.1% 2015/16 EBITDA: up 4.3%
Consumer PORTFOLIO COMPANY SNAPSHOTS
2017 RESULTS 9 MARCH 2018
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Leading European franchisor for optical and hearing aid products (~1,500 stores)
▪ Continued to outperform its very competitive market ▪ Ramp-up of closed networks, product launches (e.g. Smart Tonic), increased communication effort (advertising campaign with Sharon Stone) and network development (e.g. launch of Champagne store concept) ▪ Refinanced its high yield debt, significantly reducing financing costs
2016-17 revenue (FYE 31 July): €372.8m, up 7.9% 2016-17 EBITDA: up 4.4%
Consumer PORTFOLIO COMPANY SNAPSHOTS
Leading operator of premium campsites in France and Spain (16 campsites)
▪ 2016-17 growth driven by sales increase at constant scope (11 campsites) and the acquisition of 3 campsites before the beginning of the season ▪ Pro forma including the 5 acquisitions signed for the 2018 season, sales were up 29% (€46.8m) and EBITDAR up 29% vs 2015-16
2016-17 revenue (FYE 31 October): €37m, up 33% Increase in profitability
2017 RESULTS 9 MARCH 2018
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Leading French player on the global surgical technology market for lower-limb orthopaedics
▪ Strong growth driven by international subsidiaries ▪ Increasing contribution of the Extremities business (foot and ankle) ▪ Further market share gains in France ▪ Launch of new products (e.g. Aclip implant for arthroscopic surgery on the anterior cruciate ligament) ▪ Recruitment of a Sales director for the US market ▪ Further growth in H1 2017-18 FY 2016-17 revenue (FYE 30 June): €93.4m, up 15.6% vs 2015/16 FY 2016-17 EBITDA: €15.5m, up 15% Share price: down 7% in 2017
Healthcare PORTFOLIO COMPANY SNAPSHOTS
2017 RESULTS 9 MARCH 2018
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USEFUL INFORMATION
STOCK MARKET DATA AGENDA CONTACT
Number of shares: 36,512,301 Market capitalisation: €551m at 1/3/2018 Stock market: Euronext Paris (compartment B) Ticker: LTA ISIN code: FR0000053837
26 April 2018 Annual Shareholders' Meeting 15 May 2018, post-trading NAV as of 31/03/2018 5 September 2018, post-trading H1 2018 results and NAV as of 30/06/2018 8 November 2018, post-trading NAV as of 30/09/2018
investors@altamir.fr +33 1 53 65 01 00 www.altamir.fr
2017 RESULTS 9 MARCH 2018
p.63 This document has been prepared by Altamir SCA (“Altamir”) for meetings to be held in March 2018. ▪ No warranty is made as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Altamir is under no obligation to keep current the information contained in this presentation and any opinions expressed in this representation are subject to change without notice. ▪ This document may include forward-looking statements. These forward-looking statements relate to the future prospects, development and business strategies of Altamir and its portfolio companies and are based on estimates. By their nature, any forward-looking statement involves risks and uncertainties. Altamir cautions that forward-looking statements are not guarantees of future performance and that its actual financial condition, actual results of operations and cash flows and the development of the industries in which Altamir
this presentation. Altamir does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this document, unless required by law or any applicable regulation. ▪ Altamir accepts no liability for the consequences of any reliance upon any statement of any kind (including statements of fact or opinion) contained herein. ▪ This presentation includes only summary information and must be read in conjunction with Altamir’s financial statements, which are or will be available on Altamir’s website (www.altamir.fr) ▪ The information contained in this presentation may not be considered an invitation to invest. No information provided on this document constitutes, or should be used or considered as, an offer to sell or a solicitation of any offer to buy the securities of Altamir or any other issuer.
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